indict

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 2 of 35 PageID #: 41"Glen Forman," "Kyle Bendford" and "Stephen Thompson," togetherwith others, engaged in two separate but interrelated schemes,referred to herein as the \\Penny Stock Scheme!! and the "AdvanceFee Scheme."The Penny Stock Scheme involved fraudulentlyinflating and attempting to inflate, the share prices and tradingvolumes of certain penny stocks ("Target Stocks").The AdvanceFee Scheme involved making false promises to investors to inducethem to pay fees for non-existent services to sell their illiquidpenny stock shares.The Defendants2. The defendant SANDY WINICK was a Canadian citizenwho had lived at various times in China, Thailand, Vietnam,Canada and the United States. Among other things, WINICKorchestrated the Penny Stock Scheme and the Advance Fee Scheme.3. The defendant GREGORY CURRY was a Canadian citizenwho lived in Thailand.To further the Advance Fee Scheme,GREGORY CURRY, among other things, helped to manage call centersthat were used to solicit Advance Fee Scheme victims.Thedefendant GREGORY CURRY also helped to prepare false letters,websites and email accounts which were used to deceive potentialand actual victims of the Advance Fee Scheme.4. The defendant KOLT CURRY, also known as "MichaelEast," was a Canadian citizen who lived, at various times, inThailand and Canada.To further the Advance Fee Scheme, KOLT-2-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 3 of 35 PageID #: 42CURRY, among other things, helped to manage call centers whichwere used to solicit Advance Fee Scheme victims.The defendantKOLT CURRY also personally participated in making fraudulenttelephone calls to these victims and helped to prepare falseletters, websites and email accounts which were used to deceivepotential and actual victims of the Advance Fee Scheme.5. The defendant GREGORY ELLIS was a Canadian citizenwho lived in Canada.ELLIS, among other things, acted as thepresident of several of the companies that issued the TargetStocks (the "Target Stock Companies") and personally participatedin fraudulent phone calls to potential and actual victims of theAdvance Fee Scheme.6. The defendant GARY KERSHNER was a United Statescitizen who lived in Arizona and Kansas.To further the PennyStock Scheme, KERSHNER, among other things, made false statementsto regulators and investigators, and also created false andfraudulent documents which were presented to transfer agents andclearing firms to surreptitiously trade in the Target Stocks.7. The defendant JOSEPH MANFREDONIA, also known as"Maurizio f" "Richard, fI "Panama Joe ll and "Guillermo Mendoza, II was aunited States citizen who lived in New Jersey.To further thePenny Stock Scheme, MANFREDONIA, among other things, fraudulentlyused false press releases to promote the Target Stocks and-3-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 4 of 35 PageID #: 43recruited others to manipulate the Target Stocks' prices andtrading volumes.8. The defendant CORT POYNER was a United Statescitizen who lived in Florida.To further the Penny Stock Scheme,POYNER, among other things, knowingly bribed brokers to purchasethe Target Stocks on behalf of their clients.9. SONGKRAM ROY SAHACHAISERE was a United Statescitizen who lived in California.SAHACHAISERE ownedInvestsource, Inc., a public relations firm that did businesswith penny stock companies.To further the Penny Stock Scheme,SAHACHAISERE, among other things, fraudulently promoted theTarget Stocks.10. WILLIAM SEALS was a United States citizen wholived in California.To further the Penny Stock Scheme, SEALS,among other things, bought and sold several of the Target Stocksto fraudulently manipulate their share price and market volume.The Target Stock Companies11. Blackout Media Corp. ("BKMP") was a holdingcompany with subsidiaries that purported to conduct businesses intelevision, radio, Internet and print media.BKMP was a publiclytraded corporation whose shares traded on the over-the-counterexchange under the ticker symbol "BKMP."12. Resource Group International, Inc. ("RSGR") was aWyoming corporation headquartered in Thailand, with offices-4-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 5 of 35 PageID #: 44located in Scottsdale, Arizona.At various times, RSGR claimedit was in the business of developing a revolutionary fertilizer,generating wind power, generating solar power and enhancing oilrecovery.RSGR was a publicly traded corporation whose sharestraded on the over-the-counter exchange under the ticker symbol"RSGR. "13. Liquid Gold International Corp. ("Liquid Gold")was a Nevada corporation headquartered in Indiana. On March 12,2010, Foy Johnston, a Delaware corporation headquartered inToronto, Canada ("FOYJ"), acquired Liquid Gold.Following theacquisition, FOYJ changed its purported business focus from themanufacture of paints, cosmetics, cleaning preparations andenvironmental control apparatuses to the field of secondary oilrecovery.FOYJ was a publicly traded corporation whose sharestraded on the over-the-counter exchange under the ticker symbol"FOYJ. 1I 14. Imusic Worldwide Inc. ("Imusic" or "IMWL") was aWashington state corporation.Imusic purported to be anInternet-based business involved in the music industry.Imusicwas a publicly traded corporation whose shares traded on theover-the-counter exchange under the ticker symbol "IMWL."15. WGI Holdings Inc. ("WGIH") originally wasincorporated in Delaware in December 2006 under the name DataTrakInc. ("DataTrak") and later changed its name to WGIH.WGIH-5-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 6 of 35 PageID #: 45purported to distribute petroleum products and to own oil and gaswells in Oklahoma.WGIH was a publicly traded corporation whoseshares traded on the over-the-counter exchange under the tickersymbol "WGIH."16. Talisman Holdings Inc. ("TMHO") originally wasincorporated in Colorado in June 1998 under the name AXYN Corp.and experienced multiple name changes.TMHO was a holdingcompany with subsidiaries that claimed to produce an organicfish-based fertilizer and also to own interests in gold mines inGuyana and Peru.TMHO was a publicly traded corporation whoseshares traded on the over-the-counter exchange under the tickersymbol "TMHO."17. Nikron Technologies Inc. ("NKRN") purported to bein the enhanced oil recovery business.NKRN was a publiclytraded corporation whose shares traded on the over-the-counterexchange under the ticker symbol "NKRN."18. Tal-Cap Inc. ("TALC") was a Minnesota corporationthat purported to be in the process of trying to "acquire" aviable business.TALC was a publicly traded corporation whoseshares traded on the over-the-counter exchange under the tickersymbol "TALC."19. RainEarth, Inc. ("RainEarth" or "RNER") . was aNevada corporation, with its principal office located in Beijing,China.RainEarth purported to be in the mineral exploration-6-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 7 of 35 PageID #: 46business and the field of developing and manufacturing hollowfiber membrane materials that could be used in the medical fieldas well as sewage treatment.RainEarth waS a publicly tradedcorporation whose shares traded on the over-the-counter exchangeunder the ticker symbol "RNER."20. Sync2 Networks Corp. ("SYNW") was a Nevadacorporation that purported to be an international businessdevelopment and marketing firm.SYNW was a publicly tradedcorporation whose shares traded on the over-the-counter exchangeunder the ticker symbol "SYNW."21. MASS Petroleum ("MASP") was a Nevada corporationheadquartered in Vancouver, British Columbia, Canada.MASPpurported to engage in oil exploration and drilling. MASP was apublicly traded corporation whose shares traded on theover-the-counter exchange under the ticker symbol "MASP."22. The shares of BKMP, RSGR, Liquid Gold, FOYJ, IMWL,WGIH, TMHO, NKRN, TALC, RNER, SYNW and MASP,together withothers, are collectively referred to in this SupersedingIndictment as the Target Stocks.23. The companies that issued the Target Stocks usedstock transfer agencies.Stock transfer agents maintained thecorporate shareholder records.When a shareholder sold hisstock, for example, the stock transfer agent would substitute the-7-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 9 of 35 PageID #: 48Stocks at a profit, and attempted to do so, after theirfraudulent conduct deceived investors into believing that marketforces alone set the Target Stocks; artificially inflated shareprices and trading volumes.27. The Penny Stock Defendants acquired controllinginterests in the Target Stocks for little or no cost. At thetime the Penny Stock Defendants purchased their interests in theTarget Stocks, the Target Stocks had little or no trading volume.The Penny Stock Defendants then employed various means toartificially and fraudulently inflate the Target Stocks' shareprices and trading volumes.The Penny Stock Defendants alsotransferred shares of the Target Stocks into the possession andcontrol of stock promoters who would then comment upon the TargetStocks.28. To conceal their control and distribution of theTarget Stocks from regulators and investors, the Penny StockDefendants often falsely reported to brokerage firms the means bywhich they acquired the Target Stocks.For example, throughoutthe scheme, the penny Stock Defendants deposited the TargetStocks into multiple accounts at different brokerage firms heldby nominee entities, including offshore entities.29. The Penny Stock Defendants promoted the TargetStocks, themselves and through stock promoters, using emailblasts, chat rooms, social networking sites, message boards,-9-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 10 of 35 PageID #: 49stock touting websites and newsletters.This promotionalactivity did not reveal the involvement of the Penny StockDefendants in the promotion campaigns or their interests in theTarget Stocks, nor did the promotional activity accuratelydisclose the interests of the stock promoters in the TargetStocks.The Penny Stock Defendants also used stolen and inventedidentities to promote the Target Stocks fraudulently.30. The Penny Stock Defendants coordinated tradingactivity with the issuance of press releases, some of whichknowingly contained false and misleading information, to createthe appearance of market interest in the Target Stocks, therebyinflating the Target Stocks' share prices and providing falsepretexts for the increased trading volumes in the Target Stocks.31. The Penny Stock Defendants disseminated false andmisleading information about the Target Stocks including falsestatements about sales contracts for the Target Stocks Companies'products, governmental approvals purportedly obtained by theTarget Stock Companies, the number of outstanding shares and eventhe very nature of the type of business the Target StockCompanies conducted.For example, the Penny Stock Defendantswidely promoted certain Target Stock Companies' partnerships withChinese hospitals and corporations such as "First SwissInternational Group Inc.," even though the Penny Stock Defendantsknew that no such partnerships existed.-10-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 11 of 35 PageID #: 5032. The Penny Stock Defendants paid and attempted topay undisclosed kickbacks to stock brokers to induce the stockbrokers to cause their clients to buy the Target Stocks.ThePenny Stock Defendants also engaged in "matched trades," whichwere orders to buy or sell securities entered with the knowledgethat a prearranged matching order on the opposite side of thetransaction had been or would be entered.They also engaged in"wash sales," which were sales between accounts owned by the sameperson or entity. Using these kickbacks, matched trades and washsales, the Penny Stock Defendants were able to artificiallyincrease the trading volumes and shares prices of the TargetStocks.33. Many of the phone calls and emails used tocoordinate the false and misleading statements and actions of thePenny Stock Scheme were directed toward or emanated from a mobilephone located in Brooklyn, New York.34. The proceeds of the fraudulent sales of TargetStocks were wired from brokerage firms where nominee entities hadaccounts to various bank accounts, also in the names of thenominee entities, including bank accounts based in Panama andCosta Rica.Portions of the proceeds of the sale of the TargetStocks were then wired to the Penny Stock Defendants, minuscommissions charged by those who controlled the nominee entities.Through these nominee entities, defendants SANDY WINICK, GARY-11-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 12 of 35 PageID #: 51KERSHNER, JOSEPH MANFREDONIA, CORT POYNER, SONGKRAM ROYSAHACHAISERE, WILLIAM SEALS and others deposited and sold stock.The Advance Fee Scheme35. The defendant SANDY WINICK, together with others,including defendants GREGORY CURRY,KOLT CURRY, also known as"Michael East" and GREGORY ELLIS (collectively, the "Advance FeeDefendants") perpetrated the Advance Fee Scheme.The acts takenin furtherance of the Advance Fee Scheme described below alloccurred in or about January 2009 and July 2013.36. To carry out the Advance Fee Scheme, the AdvanceFee Defendants fraudulently solicited investors in penny stocks,including the Target Stocks (the "Advance Fee Victims"), to payadvance fees that purportedly would enable the Advance FeeVictims to sell their nearly worthless penny stocks at a profit.The Advance Fee Defendants invented non-existent businesses suchas law firms, consulting agencies and other companies (the "FakeCompanies") as part of the scheme to convince the Advance FeeVictims to pay a fee in advance of selling securities. The FakeCompanies' fees came in the form of a phony commission,regulatory fees or taxes, or some other fictitious expenses.Thedefendants knew that once the "advance fee" was paid they wouldkeep the advance fees for their own purposes and do nothing forthe Advance Fee Victims in return.37. The Advance Fee Defendants posed as employees of-12-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 13 of 35 PageID #: 52the Fake Companies including the Madden Group, Inc. ("MaddenGroup"), Smith, Shore and Jenkins ("Smith Shore"), BensonSinclair and Select American Transfer Company ("Select ATe"); andactual entities such as the Internal Revenue Service ("IRS"),among others.In reality, the Advance Fee Defendants had noofficial role at the Fake Companies or the IRS.In fact, theMadden Group, Smith Shore, Benson Sinclair and Select ATC, andothers, solely existed to facilitate the Advance Fee Scheme.Tothis end, the Advance Fee Defendants created bank accounts, phonenumbers, stationery, email accounts and websites solely tocommunicate with potential and actual victims of the Advance FeeScheme.38. The Advance Fee Defendants maintained callingcenters in Vietnam, Thailand and Canada.lived in countries throughout the world.The Advance Fee VictimsBeginning on or aboutMarch 1, 2013, the defendant WINICK began recruiting additionalpeople to open new calling centers in Brooklyn, New York, andToronto, Canada.These recruiting efforts included multipletelephone calls from Bangkok, Thailand to Brooklyn, New York.39. Individuals, acting at the direction and controlof the Advance Fee Defendants, placed phone calls from thecalling centers (the "Callers") to actual and potential victims.The Callers falsely claimed to represent unidentified buyersinterested in purchasing the Advance Fee Victims' restricted-13-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 14 of 35 PageID #: 53stock at an attractive price.On these occasions, the Callersfalsely advised the Advance Fee Victims that they needed to pay afee prior to any stock sale for a legal opinion regarding thesale of "restricted stock" ("Legal Opinion Fee") .40. On other occasions, the Callers falsely claimed tobe associated with a law firm that sought to sue the Target StockCompanies.The Callers falsely advised the Advance Fee Victimswho sought to join the lawsuit that they needed first to pay afee ("Lawsuit Fee") .41. Shortly after the Advance Fee Victims agreed topay the Legal Opinion Fee or the Lawsuit Fee, they received aninvoice for the fee via email.Once the Advance Fee Victims paidthe Legal Opinion Fee or the Lawsuit Fee, the Callers advised theAdvance Fee Victims that they owned "warrants" in addition to theshares of stock held.42. A warrant, or stock warrant, was a security issuedby a corporation.The owner could redeem the warrant for sharesof stock in the company for a predetermined price. A warrantcould be traded on an exchange and could have a very longduration to expiration or no expiration at all.43. The Callers falsely advised the Advance Feevictims that the unidentified purchaser also was interested inpurchasing their warrants at an attractive price, but first, afee had to be paid to convert the warrants into a saleable-14-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 15 of 35 PageID #: 54security ("Warrant Conversion Fee").The Callers again falselyadvised the Advance Fee Victims that their payment of the WarrantConversion Fee would result in the unnamed investors depositingfunds directly into the Advance Fee Victims' accounts to purchasethe warrants.44. Before any payment was made, however, the AdvanceFee Defendants sent each Advance Fee Victim, via emails acrossstate and international lines, a notice that the IRS requiredadvance payment of approximately 30 percent of the transaction intaxes before the sale could be consummated (the "IRS Fee").These emails contained false and fraudulent communicationspurporting to issue from employees of the IRS with names such as"Daniel Summers" and "Trevor Duncan."The Advance Fee Defendantscreated these fictitious IRS documents and personas solely forthe purpose of defrauding the Advance Fee Victims.45. After payment of the required advance fees, noneof the Advance Fee Victims received the anticipated salesproceeds.During the course of the Advance Fee Victims' dealingswith the Advance Fee Defendants, through the various FakeCompanies, the Advance Fee Victims received letters, forms,invoices, wire instructions, and other documents from the FakeCompanies via email and fax.The Advance Fee Victims also sentcompleted documents, receipts and requested forms back to theFake Companies by email or fax.-15-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 16 of 35 PageID #: 5546. The Advance Fee Defendants directed the AdvanceFee Victims to wire the Legal Opinion Fee, the Lawsuit Fee, theWarrant Conversion Fee and the IRS Fee through Citibank in NewYork City, to Credit Card Services Company SAL, which then passedthrough Citibank's Funds Transfer Network ("FTN"), which waslocated in Getzville, New York.The fees then were sent to aCitibank account maintained in Beirut, Lebanon.47. In 2009 and 2010 alone, the proceeds of theAdvance Fee Scheme totaled more than $5 million.Those proceedswere wired to bank accounts throughout the world, wheredefendants SANDY WINICK, GREG CURRY, KOLT CURRY and GREG ELLIS,among others used those fraudulently obtained funds for their ownpurposes.COUNT ONE(Conspiracy to Commit Securities Fraud- the Penny Stock Scheme)48. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as thoughfully set forth in this paragraph.49. On or about and between May 1, 2008 and July 31,2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, also-16-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 17 of 35 PageID #: 56known as "Maurizio/ 11 "Richard/II "Panama Joe ll and "GuillermoMendoza," CORT POYNER, SONGKRAM ROY SAHACHAISERE and WILLIAMSEALS, together with others, did knowingly and willfully conspireto use and employ manipulative and deceptive devices andcontrivances, contrary to Rule 10b-5 of the Rules and Regulationsof the United States Securities and Exchange Commission, Title17, Code of Federal Regulations, section 240.10b-5, by: (a)employing devices, schemes and artifices to defraud; (b) makinguntrue statements of material fact and omitting to state materialfacts necessary in order to make the statements made, in light ofthe circumstances under which they were made, not misleading; and(c) engaging in acts, practices and courses of business whichwould and did operate as a fraud and deceit upon investors andpotential investors in the Target Stocks, in connection with thepurchase and sale of investments in the Target Stocks, directlyand indirectly, by use of means and instrumentalities ofinterstate commerce and the mails, contrary to Title 15, UnitedStates Code, Sections 78j (b) and 78ff.50. In furtherance of the conspiracy and to effect itsobjects, within the Eastern District of New York and elsewhere,the defendants WINICK, KERSHNER, MANFREDONIA, POYNER,SAHACHAISERE and SEALS, together with others, committed andcaused to be committed, among others, the following:OVERT ACTS-17-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 18 of 35 PageID #: 57a. On or about November 29, 2008, POYNER stated,among other things, how the Penny Stock Defendants would be ableto manipulate the Target Stocks' prices from approximatelyper share to over $1.00 per share.b. On or about January 14, 2009, POYNERarranged, among other things, for cash payments to be made forpurchases of the Target Stocks to manipulate the Target Stocks'price and trading volume.c. On or about June 26, 2009, SAHACHAISEREreceived a telephone call from an individual in Brooklyn, NewYork, to discuss, among other things, how the Penny StockDefendants would be able to drive up the prices of the TargetStocks and how they have access to insiders at the Target StockCompanies.d. On or about October 19, 2009, SAHACHAISEREplaced a telephone call from Huntington Beach, California, to anindividual in Brooklyn, New York, to discuss, among other things,the process by which the Penny Stock Defendants would conceal thetrue ownership the Target Stocks.e. On or about June 23, 2011, KERSHNER receiveda telephone call from an individual in Brooklyn, New York, todiscuss, among other things, how KERSHNER would create falsedocuments with fake names and signatures for the Target StockCompanies.-18-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 19 of 35 PageID #: 58f. On or about July 22, 2011, KERSHNER receiveda telephone call from an individual in Brooklyn, New York, todiscuss, among other things, how KERSHNER would create falsenames of executives in fraudulent documents that the Penny StockDefendants would use in connection with the Target StockCompanies.g. On or about June 1, 2012, WINICK placed atelephone call from Bangkok, Thailand, to an individual inBrooklyn, New York, to discuss, among other things, issuing falsepress releases from the Target Stock Companies for use by thePenny Stock Defendants.h. On or about June 4, 2012, MANFREDONIA placeda telephone call from Freehold, New Jersey, to an individual inBrooklyn, New York, to discuss, among other things, how the PennyStock Defendants should build trading volume for the TargetStocks before intervention by securities regulators.i. On or about February 24, 2012, WINICKreceived a telephone call from an individual in Brooklyn, NewYork, to discuss, among other things, how the Penny StockDefendants should liquidate the Target Stocks prior tointervention by the Federal Bureau of Investigation.j. On or about February 27, 2012, WINICKreceived a telephone call from an individual in Brooklyn, NewYork, to discuss, among other things, how the Penny Stock-19-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 20 of 35 PageID #: 59Defendants should liquidate the Target Stocks because of the riskposed by an investigation by securities regulators.k. On or about August 29, 2012, l'fl.ANFREDONIl" ..received a telephone call from an individual in Brooklyn, NewYork, to discuss, among other things, how none of the Penny StockDefendants even remember the Target Stock Companies' falsebusiness plans.1. On or about September 18, 2012, MANFREDONIAplaced a telephone call from Freehold, New Jersey, to anindividual in Brooklyn, New York, to discuss, among other things,rescheduling the dissemination of the Target Stock Companies'false press releases to coincide with the promotion of the TargetStocks.seq. )(Title 18, United States Code, Sections 371 and 3551 etCOUNT TWO(Conspiracy to Commit Wire Fraud- the Penny Stock Scheme)51. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as if fullyset forth in this paragraph.52. On or about and between January 1, 2008 and July31, 2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,"-20-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 21 of 35 PageID #: 60"Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, alsoknown as "Maurizio,1I "Richard,"Mendoza," CORT POYNER, SONGKRAM ROY SAHACHAISERE and WILLIAMSEALS, together with others, did knowingly and intentionallyconspire to devise a scheme and artifice to defraud the PennyStock Victims, and to obtain money and property from them bymeans of materially false and fraudulent pretenses,representations and promises related to the Penny Stock Scheme,and, for the purpose of executing such scheme and artifice, totransmit and cause to be transmitted by means of wirecommunication in interstate and foreign commerce writings, signs,signals, pictures and sounds, contrary to Title 18, United StatesCode, Section 1343.(Title 18, United States Code, Sections 1349 and 3551et seq.)COUNT THREE(Conspiracy to Commit Wire Fraud- the Advance Fee Scheme)53. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as if fullyset forth in this paragraph.54. On or about and between January 1, 2008 and July31, 2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDY-21-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 22 of 35 PageID #: 61WINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and \\Stephen Thompson / " GREGORY CURRY,as"Michael East," and GREGORY ELLIS, together with others, didknowingly and intentionally conspire to devise a scheme andartifice to defraud the Advance Fee Victims, and to obtain moneyand property from them by means of materially false andfraudulent pretenses, representations and promises related to theAdvance Fee Scheme, and, for the purpose of executing such schemeand artifice, to transmit and cause to be transmitted by means ofwire communication in interstate and foreign commerce writings,signs, signals, pictures and sounds, contrary to Title 18, UnitedStates Code, Section 1343.(Title 18, United States Code, Sections 1349 and 3551et ~.)COUNTS FOUR THROUGH THIRTEEN(Wire Fraud - the Penny Stock Scheme)55. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as if fullyset forth in this paragraph.56. On or about and between July 22, 2009 and December1, 2012, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"-22-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 23 of 35 PageID #: 62and "Stephen Thompson," GARY KERSHNER, JOSEPH MANFREDONIA, alsoknown as "Maurizio," "Richard," "Panama Joe lland "GuillermoMendoza,;; CORT POYNER, SONGKR.i\NSEALS, together with others, did knowingly and intentionallydevise a scheme and artifice to defraud the Penny Stock Victims,to wit: the Penny Stock Scheme, and to obtain money and propertyfrom them by means of materially false and fraudulent pretenses,representations and promises, and for the purpose of executingsuch scheme and artifice, did transmit and caused to betransmitted, by means of wire communication in interstate andforeign commerce, writings, signs, signals, pictures and sounds,as set forth below:Count Approximate Description of the WireDateFOUR June 26, Telephone call from Brooklyn, New York,2009 to Huntington Beach, CaliforniaFIVE October 19, Telephone call from Huntington Beach,2009 California, to Brooklyn, New YorkSIX June 23, Telephone call from Brooklyn, New York,2011 to Tucson, ArizonaSEVEN July 22, Telephone call from Brooklyn, New York,2011 to Tucson, ArizonaEIGHT June 1, Telephone call from Bangkok, Thailand,2012 to Brooklyn, New YorkNINE June 4, Telephone call from Freehold, New2012 Jersey, to Brooklyn, New YorkTEN February Telephone call from Brooklyn, New York,24, 2012 to Bangkok, ThailandELEVEN February Telephone call from Brooklyn, New York,27, 2012 to Bangkok, Thailand-23-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 24 of 35 PageID #: 63TWELVE August 29, Telephone call from Brooklyn, New York,2012 to Freehold, New JerseyTHIRTEEN September Telephone call from Freehold, New. - . - -118, 2012 I Jersey, to BrooKLyn, New YorK3551 et seq.)(Title 18, United States Code, Sections 1343, 2 andCOUNTS FOURTEEN THROUGH EIGHTEEN(Wire Fraud - the Advance Fee Scheme)57. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as if fullyset forth in this paragraph.58. On or about and between March 6, 2013 and May 7,2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, also known as"Michael East," and GREGORY ELLIS, together with others, didknowingly and intentionally devise a scheme and artifice todefraud the Advance Fee victims, to wit: the Advance Fee Scheme,and to obtain money and property from them by means of materiallyfalse and fraudulent pretenses, representations and promises, andfor the purpose of executing such scheme and artifice, didtransmit and caused to be transmitted, by means of wirecommunication in interstate and foreign commerce, writings,signs, signals, pictures and sounds, as set forth below:-24-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 25 of 35 PageID #: 64Count Approximate Description of the WireDateFOURTEEN March 6, Telephone call from Brooklyn, New2013 York, to Bangkok, ThailandFIFTEEN March 21, Telephone call from Bangkok, Thailand,2013 to Brooklyn, New YorkSIXTEEN April 8, Telephone call from Bangkok, Thailand,2013 to Brooklyn, New YorkSEVENTEEN May 1, 2013 Telephone call from Queens, New York,to Toronto, CanadaEIGHTEEN May 7, 2013 Telephone call from Brooklyn, NewYork, to Bangkok, Thailand3551 et ~.)(Title 18, United States Code, Sections 1343, 2 andCOUNT NINETEEN(Securities Fraud -RSGR)59. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as thoughfully set forth in this paragraph.60. In or about and between May 2008 and July 2013,both dates being approximate and inclusive, within the EasternDistrict of New York and elsewhere, the defendants SANDY WINICK,also known as "Jerry Sarrano," "John Peter Smith," "AbdielVergara," "Robin Cheer," "Glen Forman," "Kyle Bendford" and"Stephen Thompson," JOSEPH MANFREDONIA, also known as "Maurizio,""Richard," "Panama Joe" and "Guillermo Mendoza," CORT POYNER,SONGKRAM ROY SAHACHAISERE and WILLIAM SEALS together with others,did knowingly and willfully use and employ one or more-25-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 26 of 35 PageID #: 65manipulative and deceptive devices and contrivances, contrary toRule 10b-5 of the Rules and Regulations of the United Statessecurities and Exchange COfcnnission, Title 17 ICode of FederalRegulations, Section 240.10b-5, by: (a) employing one or moredevices, schemes and artifices to defraud; (b) making one or moreuntrue statements of material fact and omitting to state one ormore material facts necessary in order to make the statementsmade, in the light of the circumstances in which they were made,not misleading; and (c) engaging in one or more acts, practicesand courses of business which would and did operate as a fraudand deceit upon one or more investors or potential investors inRSGR, in connection with the purchases and sales of investmentsin RSGR, directly and indirectly, by use of means andinstrumentalities of interstate commerce and the mails.(Title 15, United States Code, Sections 78j(b) and78ff; Title 18, united States Code, Sections 2 and 3551 et seq.)COUNT TWENTY(Securities Fraud -FOYJ)61. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as thoughfully set forth in this paragraph.62. In or about and between February 2010 and July2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendant SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,"-26-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 27 of 35 PageID #: 66"Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," together with others, did knowingly andwillfully use and employ one 0]:--mOl.-e manipulative and deceptivedevices and contrivances, contrary to Rule 10b-5 of the Rules andRegulations of the United States Securities and ExchangeCommission, Title 17, Code of Federal Regulations, Section240.10b-5, by: (a) employing one or more devices, schemes andartifices to defraud; (b) making one or more untrue statements ofmaterial fact and omitting to state one or more material factsnecessary in order to make the statements made, in the light ofthe circumstances in which they were made, not misleading; and(c) engaging in one or more acts, practices and courses ofbusiness which would and did operate as a fraud and deceit uponone or more investors and potential investors in FOYJ, inconnection with the purchases and sales of investments in FOYJ,directly and indirectly, by use of means and instrumentalities ofinterstate commerce and the mails.(Title 15, United States Code, Sections 78j(b) and78ff; Title 18, united States Code, Sections 2 and 3551 et seq.)COUNT TWENTY-ONE(Securities Fraud - TMHO)63. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as thoughfully set forth in this paragraph.-27-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 28 of 35 PageID #: 6764. In or about and between February 2011 and July2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SA.NDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GARY KERSHNER and JOSEPH MANFREDONIA,also known as "Maurizio,1I "Richard," "Panama Joel! and "GuillermoMendoza," together with others, did knowingly and willfully useand employ one or more manipulative and deceptive devices andcontrivances, contrary to Rule 10b-5 of the Rules and Regulationsof the United States Securities and Exchange Commission, Title17, Code of Federal Regulations, Section 240.10b-5, by: (a)employing one or more devices, schemes and artifices to defraud;(b) making one or more untrue statements of material fact andomitting to state one or more material facts necessary in orderto make the statements made, in the light of the circumstances inwhich they were made, not misleading; and (c) engaging in one ormore acts, practices and courses of business which would and didoperate as a fraud and deceit upon one or more investors andpotential investors in TMHO,sales of investments in TMHO,in connection with the purchases anddirectly and indirectly, by use ofmeans and instrumentalities of interstate commerce and the mails.(Title 15, United States Code, Sections 7Sj(b) and7Sff; Title IS, United States Code, Sections 2 and 3551 et seg.)-2S-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 29 of 35 PageID #: 68COUNT TWENTY-TWO(Securities Fraud - WGIH)65. The allegations contained in paragraphs onethrough forty-seven are realleged and incorporated as thoughfully set forth in this paragraph.66. In or about and between April 2012 and July 2013,both dates being approximate and inclusive, within the EasternDistrict of New York and elsewhere, the defendants SANDY WINICK,also known as "Jerry Sarrano," "John Peter Smith," "Abdielvergara," "Robin Cheer," "Glen Forman," "Kyle Bendford" and"Stephen Thompson," GARY KERSHNER and JOSEPH MANFREDONIA, alsoknown as "Maurizio,1I "Richard," "Panama Joe" and "GuillermoMendoza," together with others, did knowingly and willfully useand employ one or more manipulative and deceptive devices andcontrivances, contrary to Rule 10b-5 of the Rules and Regulationsof the united States Securities and Exchange Commission, Title17, Code of Federal Regulations, Section 240.10b-5, by: (a)employing one or more devices, schemes and artifices to defraud;(b) making one or more untrue statements of material fact andomitting to state one or more material facts necessary in orderto make the statements made, in the light of the circumstances inwhich they were made, not misleading; and (c) engaging in one ormore acts, practices and courses of business which would and didoperate as a fraud and deceit one or more investors andpotential investors in WGIH, in connection with the purchases and-29-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 30 of 35 PageID #: 69sales of investments in WGIH, directly and indirectly, by use ofmeans and instrumentalities of interstate commerce and the mails.(Title 15 1United States Code! Sections 78j(b) and78ff; Title 18, United States Code, Sections 2 and 3551 et seq.)COUNT TWENTY-THREE(False Impersonation of an Officer and Employeeof the United States - "Trevor Duncan")67. The allegations contained in paragraphs onethrough forty-seven are re-alleged and incorporated as thoughfully set forth herein.68. On or about and between January 1, 2008 and July31, 2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, also known as"Michael East," and GREGORY ELLIS, together with others,knowingly and intentionally falsely assumed and pretended to be"Trevor Duncan," an officer and employee acting under theauthority of the United States and any department, agency andofficer thereof, and acting as such, and in such pretendedcharacter demanded and obtained money, papers, documents andthings of value, to wit: the fictitious IRS Fee.(Title 18, United States Code, Sections 912, 2 and 3551-30-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 31 of 35 PageID #: 70COUNT TWENTY-FOUR(False Impersonation of an Officer and Employeeof the United States - "Daniel Summers")69. The allegations C011tained in paragraphs onethrough forty-seven are re-alleged and incorporated as thoughfully set forth herein.70. On or about and between January 1, 2008 and July31, 2013, both dates being approximate and inclusive, within theEastern District of New York and elsewhere, the defendants SANDYWINICK, also known as "Jerry Sarrano," "John Peter Smith,""Abdiel Vergara," "Robin Cheer," "Glen Forman," "Kyle Bendford"and "Stephen Thompson," GREGORY CURRY, KOLT CURRY, also known as"Michael East," and GREGORY ELLIS, together with others,knowingly and intentionally falsely assumed and pretended to be"Daniel Summers," an officer and employee acting under theauthority of the united States and any department, agency andofficer thereof, and acting as such, and in such pretendedcharacter demanded and obtained money, papers, documents andthings of value, to wit: the fictitious IRS Fee.et gg.)(Title 18, United States Code, Sections 912, 2 and 3551CRIMINAL FORFEITURE ALLEGATION AS TO COUNTS ONEAND TWO, FOUR THROUGH THIRTEEN, AND NINETEENTHROUGH TWENTY-TWO71. The United States hereby gives notice to thedefendants charged in Counts One and Two, Four through Thirteen,-31-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 32 of 35 PageID #: 71and Nineteen through Twenty-Two that, upon their conviction ofany such offenses, the government will seek forfeiture inaccordance with Title 18, united States Code, Section981(a) (1) (C)and Title 28, United States Code, Section 2461(c),which require any person convicted of such offenses to forfeitany property, real or personal, constituting or derived fromproceeds obtained directly or indirectly as a result of suchoffenses.72. If any of the above-described forfeitableproperty, as a result of any act or omission of the defendants:a. cannot be located upon the exercise of duediligence;b. has been transferred or sold to, or depositedwith, a third party;c. has been placed beyond the jurisdiction ofthe Court;d. has been substantially diminished in value;ore. has been commingled with other property,which cannot be divided without difficulty;it is the intent of the United States, pursuant to Title 21,United States Code, Section 853(p), as incorporated by Title 28,united States Code, Section 2461(c), to seek forfeiture of any-32-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 33 of 35 PageID #: 72other property of the defendants, up to the value of theforfeitable property described in this forfeiture allegation.(Title 28, United States Code, Section 2461(c); Title18, United States Code, Section 981(a) (1) (C); Title 21, UnitedStates Code, Section 853(p»CRIMINAL FORFEITURE ALLEGATION AS TOCOUNTS THREE AND FOURTEEN THROUGH EIGHTEEN73. The United States hereby gives notice to thedefendants that, upon conviction of any of the offenses chargedin Count Three or Counts Fourteen through Eighteen, thegovernment will seek forfeiture in accordance with Title 18,United States Code, Section 982(a) (8), which requires any personconvicted of such offenses to forfeit any property (A) used orintended to be used to commit, to facilitate, or to promote thecommission of such offense, and (B) constituting derived from, ortraceable to the gross proceeds obtained directly or indirectlyas a result of such offenses.74. If any of the above-described forfeitableproperty, as a result of any act or omission of the defendants:diligence;with, a third party;the Court;a. cannot be located upon the exercise of dueb. has been transferred or sold to, or depositedc. has been placed beyond the jurisdiction of-33-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 34 of 35 PageID #: 73ord. has been substantially diminished in value;e. has been corCimingled with other property Iwhich cannot be divided without difficulty;it is the intent of the United States, pursuant to Title 21,United States Code, Section 853(p), as incorporated by Title 18,United States Code, section 982(b), to seek forfeiture of anyother property of the defendants, up to the value of theforfeitable property described in this forfeiture allegation.(Title 18, United States Code, Sections 982(a) (8) and982(b); Title 21, United States Code, Section 853(p))A TRUE BILLFORE PERSON~ (})JJ;: (C:.R TTA E. LYNCHUNITED STATES ATTORNEYEASTERN DISTRICT OF NEW YORK-34-

Case 1:13-cr-00452-WFK Document 3 Filed 08/07/13 Page 35 of 35 PageID #: 74F. #2011R01982FORMDBD-34JUN. 85No. 13-CR-452 (S-l) (WFK)UNITED STATES DISTRICT COURTEASTERN District afNEW YORK.CRIMINAL DIVISIONTHE UNITED STATES OF AMERICAVS.SANDY WINICK, also known as "Jerry Sarrano, " "John Peter Smith, " "AbdielVergara, " "Robin Cheer, " "Glen Forman, " "Kyle Bendford" and "StephenThompson, "GREGORY CURRY, KOLT CURRY, also known as "Michael East, "GREGORY ELLIS, GARY KERSHNER, JOSEPH MANFREDONIA, also knownas "Maurizio, " "Richard, ""Panama Joe" and "Guillermo Mendoza, " CORTPOYNER, SONGKRAM ROY SAHACHAISERE and WILLIAM SEALS,Defendants.SUPERSEDING INDICTMENT(T. 15, U.S.c., §§ 78j(b) and 78ff; T. 18, U.S.c., §§ 371, 912, 981(a)(l)(C),982(a)(8), 982(b), 1343, 1349,2 and 3551 et~.; T. 21, U.S.C., § 853(p);T. 28, U.S.C., § 2461(c).)A true bill.-------- ~f~-----~;;;~~4'YryFiled in open court this _________________ day, of ____________ ';i.D. 20ClerkBail, $ __________ _Christopher Ott, Assistant U.S. Attorney (718) 254-6154